HHS Discretionary Budget Flat in FY 2015 President’s Request

Published: April 02, 2014

Forecasts and SpendingHHS

The FY 2015 President’s budget request provides $77.1 billion in discretionary funding for HHS, a 1.7% decrease from FY 2014 enacted levels. The HHS budget totals $1 trillion in outlays, but the proposed investments and legislative initiatives would save an estimated $356 billion over ten years, according to budget documentation.

Overall, HHS’ discretionary budget is flat compared to FY 2014 enacted levels.  Many of the priorities expressed in last year’s budget request remain the same, such as helping make health care coverage affordable, improving care, training new providers, supporting medical research, and assisting vulnerable populations.

HRSA, CDC and ACF bear the brunt of the $1.3 billion reduction over FY 2014 levels.

Deltek’s analysis indicates that the contractor addressable portion of the total FY 2015 HHS budget is $16.4 billion, down 4.5% over FY 2014 enacted levels. 

HHS is requesting $8.6 billion in IT funding, down 10.4% over FY 2014.  Grants account for $4.4 billion.  $812 million of the IT total represents development, modernization and enhancement, 9.4% of the total IT budget request, and down 32% from current year enacted levels. 

Deltek’s analysis reveals the HHS contractor addressable portion of the IT budget is $3.2 billion for FY 2015, down 7.5% over FY 2014 enacted levels, but on par with FY 2013 IT spending. 

Although the HHS budget request is relatively flat, IT opportunities for contractors still exist in areas such as reigning in fraud and abuse.  CMS is requesting a 121% increase in funding for the CMS Fraud Prevention System (FPS) and a 354% increase for the CMS Health Care Fraud Prevention Partnership (HFPP).